AFP, Beijing :
Chinese exports grew slower than forecast in August, hit by weak global demand, but analysts said Friday that a jump in imports indicated a pick-up domestically and point to a further improvement.
The figures follow a run of broadly positive readings in recent months, which have provided some optimism in the world’s number two economy and key driver of global growth.
Exports increased 5.5 percent year-on-year, the customs administration said, down from 7.2 percent in July and well off the 6.0 percent in a Bloomberg News survey.
“There appears to have been a broader decline in external demand,” Julian Evans-Pritchard of Capital Economics said in a note.
But he added that “further downside to export growth should be limited by the fairly positive outlook for China’s main trading partners”.
Imports climbed 13.3 percent, beating July’s 11 percent and the 10.0 percent forecast in the Bloomberg survey. The trade surplus for the month came in at $42.0 billion.
“Strong imports reflect the momentum of domestic demand. It seems that third-quarter gross domestic product will see an upside risk again,” Raymond Yeung, chief economist for Greater China at Australia & New Zealand Banking Group Ltd, told Bloomberg News.
The figures are likely to be welcomed by the country’s leaders who are trying to recalibrate its growth model from one driven by exports and state investment to one based on domestic consumption.
“The strong yuan is favourable to China if they want to buy more from the rest of the world,” Yeung said.
Earlier this year the yuan sank to almost 7.0 to the dollar, a level not seen in almost eight years-hit by capital outflows as the economy struggled and traders bet on US rate hikes.
Chinese exports grew slower than forecast in August, hit by weak global demand, but analysts said Friday that a jump in imports indicated a pick-up domestically and point to a further improvement.
The figures follow a run of broadly positive readings in recent months, which have provided some optimism in the world’s number two economy and key driver of global growth.
Exports increased 5.5 percent year-on-year, the customs administration said, down from 7.2 percent in July and well off the 6.0 percent in a Bloomberg News survey.
“There appears to have been a broader decline in external demand,” Julian Evans-Pritchard of Capital Economics said in a note.
But he added that “further downside to export growth should be limited by the fairly positive outlook for China’s main trading partners”.
Imports climbed 13.3 percent, beating July’s 11 percent and the 10.0 percent forecast in the Bloomberg survey. The trade surplus for the month came in at $42.0 billion.
“Strong imports reflect the momentum of domestic demand. It seems that third-quarter gross domestic product will see an upside risk again,” Raymond Yeung, chief economist for Greater China at Australia & New Zealand Banking Group Ltd, told Bloomberg News.
The figures are likely to be welcomed by the country’s leaders who are trying to recalibrate its growth model from one driven by exports and state investment to one based on domestic consumption.
“The strong yuan is favourable to China if they want to buy more from the rest of the world,” Yeung said.
Earlier this year the yuan sank to almost 7.0 to the dollar, a level not seen in almost eight years-hit by capital outflows as the economy struggled and traders bet on US rate hikes.
